Question

27. What are some of the major challenges facing the accounting profession? p. 18

Answer 1

Some of the major challenges facing the accounting profession are as follows:-

1. Automation and AI are taking over more traditional accounting duties:- AI is becoming more and more capable of handling complex accounting duties such as collecting transactions and compiling them into financial statements and tax returns.

2. Accountants need to diversify their skills:-  Technology is reducing the need for traditional, rules-based accounting skills and increasing demand for financial analysis and strategy. Become as familiar as possible with the advanced features—like forecasting and analytics—offered by your accounting software so you’re better equipped to interpret and translate the increasingly deep data it provides into actionable advice.

3. Tax Cuts and Jobs Act:- Entertainment expenses (e.g., sporting events, concerts) are no longer deductible, though business-related meals are. Bonus depreciation allows businesses to deduct 100% of the depreciation on business assets such as vehicles, computers, and other equipment right away for the next three years (through 2022). Many more small businesses (those with $25 million or less in annual gross receipts instead of the previous threshold of $5 million or less) are eligible to use the cash method of accounting, which is often simpler and cheaper than accrual accounting.

4. Cybersecurity is becoming a bigger priority:- Accounting information (e.g., credit card information, bank account numbers, passwords) is an especially hot target for hackers because it can be high-value. As an accounting professional, your responsibility to protect your data goes well beyond the walls of your own company’s data; it includes the data for all contacts in your system, including clients, employees, and service providers.